Short supplies to limit downward room in manganese prices
Prices of manganese dipped this week as downstream demand cooled after tenders from large steel mills ended. Downward room is limited as the current short supplies are unlikely to ease in the short term.
Tenders for August from most steel mills completed as of Wednesday, and purchasing prices were settled at highs. Last week, Taiyuan Iron & Steel in Shanxi province settled its purchasing price for August at 21,500CNY/MT, up 6,700CNY/MT from the tender for July.
Given current high profits at manganese plants, mills lowered offers to boost spot transactions.
While some small business hesitated on high prices, major consumers such as large-scale steel mills and stainless-steel plants released stable demand each month.
On supply, manganese plants in Songtao of Guizhou province have not resumed production and are likely to recover in the middle of September at the soonest.
In Ningxia, one of the three manganese plants at local major producer Tianyuan Group remained suspended for technical upgrades. It shut in mid-May and affected annual capacity of 200,000 MT.
Production in Huayuan county of Hunan province resumed gradually last week. However, further rectifications are needed for local pollution of heavy metal tailings. The environment inspection team will review rectifications in September.
As of Tuesday July 31st, the manganese price in major producing areas at 19,000-19,200CNY/MT, down an average 150CNY/MT from July 30th. This followed a surge from the end of June, when the accessed price stood at 13,900CNY/MT.
